Compared to last year's order amount, it has doubled
Considering the 'economic downturn' due to the spread of COVID-19
80% share of civil engineering and construction works with significant economic ripple effects
[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH) plans to invest a total of 20.5 trillion KRW in construction and service orders this year. This is the largest amount since the corporation's establishment, approximately double the 10.3 trillion KRW ordered last year.
On the 24th, LH announced that it has tentatively established a construction and service order plan worth 20.5 trillion KRW, the largest ever. Considering the economic downturn caused by the recent spread of COVID-19, LH decided to increase the execution rate in the first half of this year by 11 percentage points (4.6 trillion KRW) compared to last year (23%·2.4 trillion KRW). Accordingly, 7 trillion KRW, which is 34% of the total annual order amount, will be executed early.
By project, 4.3 trillion KRW will be ordered for land development projects, including plans to expand housing supply by 300,000 units in the metropolitan area. Among these, orders related to infrastructure for residents' transportation convenience amount to 1.3 trillion KRW (20 districts·38 cases). The housing project plans to order 16.2 trillion KRW (93,000 units) for expanding public housing supply according to the Housing Welfare Roadmap and constructing community-based support facilities.
Along with the expansion of order amounts, LH will also pursue institutional improvements to innovate construction culture. Advanced ordering systems such as a simplified comprehensive evaluation bidding system to favor technologically capable mid-sized and small companies, and construction management (CM) projects with construction responsibility that allow contractors' know-how to be reflected in designs, will be introduced.
The main order types are as follows: in the construction sector, ▲comprehensive evaluation 127 cases (14.4 trillion KRW) ▲simplified comprehensive evaluation 164 cases (3.1 trillion KRW) ▲qualification evaluation 606 cases (2.1 trillion KRW); in the service sector, ▲qualification evaluation 200 cases (200 billion KRW) ▲design competition 67 cases (200 billion KRW).
By construction type, civil engineering and architectural works, which have significant economic ripple effects such as job creation, account for about 80.5% of the total amount, with 2.7 trillion KRW and 13.8 trillion KRW respectively. Other works include electrical and telecommunications at 2.7 trillion KRW and landscaping at 500 billion KRW.
By region, the metropolitan area accounts for 12.8 trillion KRW, and provincial areas for 7.7 trillion KRW. Specifically, Seoul accounts for 1.8 trillion KRW, Incheon 4.7 trillion KRW, Gyeonggi 6.1 trillion KRW, Daejeon·Chungnam 700 billion KRW, Sejong City 1 trillion KRW, Busan·Ulsan 2 trillion KRW, Jeonbuk 100 billion KRW, Gyeongnam 800 billion KRW, and other regions 2 trillion KRW.
An LH official said, "Through the 20.5 trillion KRW order plan, we will not only achieve the Housing Welfare Roadmap early but also serve as a catalyst for revitalization and job creation in the overall economy, which has been depressed recently due to COVID-19 and other factors."
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